AP Statistics Chapter 8 Outline 8.1 Confidence Intervals A Confidence Interval for a population parameter is an interval of plausible values for that parameter. It is constructed in such a way so that, with a chosen degree of confidence, the value of the parameter will be captured inside the interval. A point estimator is a statistic that provides an estimate of a population parameter. The value of that statistic from a sample is called a point estimate. Ideally, a point estimate is our “best guess” at the value of an unknown parameter. Confidence Interval: An interval calculated from the data, which has the form: estimate ± margin of error statistic ± (critical value) • (standard deviation of statistic) The margin of error tells how close the estimate tends to be to the unknown parameter in repeated random sampling. A confidence level C, the overall success rate of the method for calculating the confidence interval. That is, in C% of all possible samples, the method would yield an interval that captures the true parameter value. Interpreting Confidence Intervals: Confidence level: To say that we are 95% confident is shorthand for “95% of all possible samples of a given size from this population will result in an interval that captures the unknown parameter.” Confidence interval: To interpret a C% confidence interval for an unknown parameter, say, “We are C% confident that the interval from _____ to _____ captures the actual value of the [population parameter in context].” Calculating a Confidence Interval: statistic ± (critical value) • (standard deviation of statistic) Check the Conditions for A Confidence Interval: Random: The data should come from a well-designed random sample or randomized experiment. Normal: The sampling distribution of the statistic is approximately Normal. o For means: population distribution is Normal or n ≥ 30 o For proportions: np ≥ 10 and n(1 – p) ≥ 10. Independent: Individual observations are independent. When sampling without replacement, check 10% condition 8.2 Estimating a Population Proportion Confidence Intervals Four Step Process: **You must do this!!** State: What parameter do you want to estimate, and at what confidence level? Plan: Identify the appropriate inference method. Check conditions. Do: If the conditions are met, perform calculations. Conclude: Interpret your interval in the context of the problem. When the standard deviation of a statistic is estimated from data, the results is called the standard error of the statistic. One Sample z Interval for a Population Proportion statistic ± (critical value) • (standard deviation of statistic) 𝑝̂ (1 − 𝑝̂ ) 𝑝̂ ± 𝑧 ∗ √ 𝑛 Sample Size for a desired Margin of Error: To determine the sample size n that will yield a level C confidence interval for a population proportion p with a maximum margin of error ME, solve the following inequality for n: 𝑝̂ (1 − 𝑝̂ ) 𝑧∗√ ≤ 𝑀𝐸 𝑛 8.3 Estimating a Population Mean One Sample z Interval for a Population Mean statistic ± (critical value) • (standard deviation of statistic) 𝑥̅ ± 𝑧 ∗ 𝜎 √𝑛 Choosing Sample Size for a Desired Margin of Error When Estimating µ Get a reasonable value for the population standard deviation σ from an earlier or pilot study. Find the critical value z* from a standard Normal curve for confidence level C. Set the expression for the margin of error to be less than or equal to ME and solve for n: 𝜎 𝑧∗ ≤ 𝑀𝐸 √𝑛 When 𝝈 is Unknown: Use a t Distribution: Draw an SRS of size n from a large population that has a Normal distribution with mean µ and standard deviation σ. The statistic t x sx n has the t distribution with degrees of freedom df = n – 1. The statistic will have approximately a tn – 1 distribution as long as the sampling distribution is close to Normal. Comparing the density curves of the standard Normal distribution and t distributions: The density curves of the t distributions are similar in shape to the standard Normal curve. The spread of the t distributions is a bit greater than that of the standard Normal distribution. The t distributions have more probability in the tails and less in the center than does the standard Normal. As the degrees of freedom increase, the t density curve approaches the standard Normal curve ever more closely. Assignment Calendar 1/6 Monday 8.1 # 5-13 odd, 17 1/8 Wednesday 8.2 #27, 31, 33, 35, 37, 41, 43, 47 1/10 Friday 8.3 #55, 57, 59, 63 1/14 Tuesday 8.3 #65, 67, 71, 73 1/16 Thursday Review 1/21 Tuesday Test